Autonomy shares drop despite solid results

Punished for missed targets

Autonomy saw its shares drop more than ten per cent on results for the first quarter, showing good revenue growth but slightly weaker than expected profits.

The Cambridge company made revenues of $105.1m, up 61 per cent on a year ago, and a net profit of $16.4m, up 60 per cent, for the first quarter ended 31 March 2008. Analysts were expecting nearer to $20m in net profit.

Repeat business from existing customers provided 45 per cent of revenue.

Shares fell 108p to 881p, or just less than 11 per cent in a falling market.

Chief executive Mike Lynch said the company was not changing guidance for the year and that the sub-prime crisis was "a net positive for our business".

He said there had been a move from general IT spending to regulatory and litigation-related purchases as a result of international problems.

Looking forward, Lynch said the company would review its prospects "if, as expected, current strength continues". ®